Review Of UK Covered Bond Framework

On 6 April 2011, the UK Financial Services Authority ("FSA") and HM Treasury ("HMT") published a consultation paper setting out a joint review of the UK Regulated Covered Bonds Regulations (the "UK Regulations") with the stated aim of ensuring the UK Regulations continue to support the UK covered bond market and to help UK issuers compete on a level playing field with issuers from other jurisdictions. The consultation paper also proposes some minor changes to the UK Regulations.

Covered bonds have been issued by UK issuers since 2003 when HBOS Treasury Services launched the inaugural issuance of UK covered bonds. Unlike many other European jurisdictions, the UK did not, however, have the benefit of a statutory framework underpinning covered bond issuances until the UK Regulations were enacted in 2008.